Why does your next-door neighbor pay less for home insurance than you, even though your houses are practically identical? The math behind your home insurance costs is complicated, and small differences can mean big dollars. In this article, we’ll examine some of the main factors impacting these costs.
- Whether You’ve Renovated. Certain renovations, like upgrading your electrical panel from risky old fuses to a modern circuit breaker, can lower your home insurance costs. Insurers reward proactive upgrades that reduce the chances of hazards occurring in your home. Likewise, investing in impact-resistant roofing, storm shutters, and alarm systems shows you’re serious about prevention. And that earns savings.
- Your Choice of Deductibles. The amount you choose for your deductible also affects your insurance premiums. The higher the deductible, the lower the premiums. Before deciding, calculate what you’d pay out-of-pocket in each scenario. You might be surprised to discover that a higher deductible offers tangible savings compared to paying higher premiums in exchange for a low deductible.
- Your Claims History. A history of filing claims can also drive up your home insurance cost. This is because insurance companies view policyholders who submit frequent claims as higher risk. Therefore, if you’ve previously filed a claim, you’ll likely pay higher premiums than someone with a claim-free history.
Here at Curtis Helms Insurance, we pride ourselves on offering affordable home insurance solutions for people across the Charlotte, North Carolina area. We’d be happy to sit down with you and discuss how you can make your home insurance costs even more affordable. If this is something you’re interested in, start the conversation by reaching out to us today.